MUM 6____ ADVANCED LEGAL ISSUES FOR THE MUSICIAN Spring Semester 2008 Wed. 7:10 – 10:00 pm Three Credits AL Room 247 Instructor: Dr. Ira Abrams (561) 362-5212 E-mail: iraabrams55@gmail.com Required Texts: “The Future of the Music Business: How to Succeed With the New Digital Technologies” (2005) by Steve Gordon (Backbeat Books, San Francisco); “All You Need To Know About The Music Business” (6th edition, 2006) by Donald S. Passman (Simon & Schuster, New York); “Moser on Music Copyright” (2006) by David Moser (Thomson Course Technology PTR/ ArtistPro Publishing, Boston, MA); “The Future of Music: Manifesto for the Digital Music Revolution” (2005) by David Kusek and Gerd Leonhard (Berklee Press, Boston, MA); “This Business of Songwriting: A Practical Guide to Doing Business as a Songwriter” (2006) by Jason Blume (Billboard Books, New York); MySpace For Musicians (2007) by Frances Vincent (Thomson Course Technology). Reference sources: See attached Bibliography and List of Useful Websites. Course Description and Objectives: This course will present an in-depth study of the legal aspects of the music business, with an emphasis on recording contracts and music publishing issues, especially as they are affected by internet download distribution, MySpace and other “Social Networking” websites, portable telecom devices, the shift from computer-resident databases to Web-based, and other technological innovations. This course will also cover the effect of media consolidation on the music business, the legal and business aspects of music licensing, copyright essentials, important court cases involving the music industry, how royalties are calculated, performing rights, artist management and agency contracts, modern music marketing and promotion, how Digital Music Aggregators and Retailers (DMAs and DMRs) operate, how to make and present a great demo, music video and film issues, live performance contracts, touring and merchandising issues. Emphasis will be placed on practical real-world experiences. All students will be required to do on-line research, have an accessible e-mail address and submit papers via e-mail (in MS Word format) in addition to “hard” copies. Please make sure to silence all cell phones and other beeping devices during class. I need your undivided attention. Attendance Policy: Attendance is mandatory. Any student with more than three unexcused absences must withdraw from the course. Attendance will be factored into your grade. Each unexcused absence over one will result in lowering your grade by one-half a letter grade (that is, B to B-, B- to C+, etc.). Attendance and good note-taking are important because the lectures will go well beyond the text material. 1 Students Will Strictly Comply With High Academic Integrity Standards: Plagiarism and other forms of academic dishonesty will not be tolerated. I am a voracious reader and will probably know if you have copied from another source without giving the author credit. Papers submitted must show proper attribution to authors whose works are used. Grading and Evaluation: Class participation will be an important component of your final grade. Students are expected to prepare for every class; but in addition, groups of students may be called upon to lead some individual class sessions on a rotating basis. Written assignments are due at the beginning of the class on the due date. After that time, they are considered late and points will be subtracted. Unless specific arrangements have been made in advance, late assignments will not be accepted after 10:00 p.m. on the due date. Missed exams will not be made up unless arrangements have been made in advance. 30% of the student’s grade will be attributed to class participation, 20 % to mid-term exam grade, 30% to class papers and 20% to final exam grade. 95-100=A 90-94=A87-89=B+ 84-86=B 80-83=B77-79=C+ 74-76=C 70-73=C- 67-69=D+ 64-66=D 60-63=Dbelow 60=F Special Requirements for MSMBA Graduate Students: Each MSMBA student will give an oral presentation, containing substantial information, concerning a music law or music business issue that the MSMBA student shall designate and research after Dr. Abrams has been consulted and approves the particular subject of the presentation. Each presentation will run 15 minutes. At the conclusion, the presenter will be prepared to answer questions concerning the subject of the talk. The presenter may use notes but may not read the presentation. The presenter must use visual aids such as Powerpoint, handouts or charts, etc. The date for the presentations will be Wednesday March 19, 2008. Each MSMBA student will prepare a research paper that complies with APA stylistic standards and will deliver a hard copy, as well as an e-mailed copy, to me on or before the date and time of the presentation. Class Schedule: Wed. Jan 9 Introduction to course & overview of intellectual property & music licensing; Discussion and assignment of class papers: Mid-term paper (due from all students Wednesday, February 27, 2008): How has the electronic (digital) delivery of music via the internet and satellite transmission changed the economics of the music industry? In addition to P2P (peer-to-peer) electronic delivery of music, discuss the effect of the following on the traditional “brick and mortar” music industry: internet radio, satellite radio (XM, Sirius), podcasting, MP3, the iPod, iPhone and similar wireless and tethered playback/receiving devices, 2 iTunes and other digital music services, MySpace.com, Facebook, YouTube, Last.fm, telephone ringtones/mastertones, and the electronic game industry. What are the best business models for the electronic distribution of music? How can the respective needs of the public, recording artists, songwriters, record companies and music publishers all be met? Is copyright (and especially the concept of Fair Use) obsolete or can it be adapted to fit the new technology? Connect each of these questions to the subject. In connection with the above paper, students should read Steve Gordon’s book “The Future of the Music Business” and Kusek and Leonhard’s book “The Future of Music” described on the first page of this Syllabus. Additionally, see the Useful Websites list accompanying this Syllabus. Second class paper (due Tuesday, April 23, 2008): Choose your own music industry subject to write about, but your subject must first be discussed with and approved by me. In the absence of your choosing your own approved topic, the default is that you will write a paper on the following subject: Form and launch your own online record label (on paper). What contracts will need to be in place? Describe what steps you’ll need to go through, from formation of the entity to signing the label’s artists and promoting, marketing and distributing your artists’ records. For purposes of this paper, assume that you have a budget of $250,000 at your disposal. Wed. Jan 16 Introduction to the course. A short history of copyright & major copyright issues. Some relevant court cases: A&M Records, et al vs. Napster and the anti-circumvention provisions of the Digital Millennium CopyrightAct; MGM vs. Grokster; How is Napster different from Grokster? RIAA vs. Limewire; Universal vs. Sony; Universal vs.Reimerdes/Corley; Eldred vs. Ashcroft; Felton; Verizon cases (and others to be assigned). Wed. Jan 23 The Impact of the Internet, BitTorrent, YouTube, Facebook, MySpace and Tivo on copyright; the effect of hyper-convergence of corporate media ownership on what we hear, read and view. Digital Sampling. Discussion of important sampling cases, including Grand Upright Music Ltd. V. Warner Bros. Records, Bridgeport Music, Inc. v. Dimension Films (6th Cir. 2004). 3 Wed. Jan 30 Music Publishing overview Sources of Music Publishing Income Wed. Feb 6 Public performance rights Mechanical & Compulsory licenses Wed. Feb 13 Songwriters’ agreements Wed. Feb 20 Co-publishing & Administration agreements; Foreign subpublishing agreements Wed. Feb 27 First class paper due; Mid-Term Exam (open book) Wed. Mar 5 Spring Break (No class) Wed. Mar 12 Personal management and agency agreements; Live performance Contracts and riders Wed. Mar 19 MSMBA presentations Organizing artist entities/group issues; Internal band members’ agreements Wed. Mar 26 How to make a great demo & approach labels Wed. Apr. 2 Anatomy of a major label record company; Recording agreements; Online record companies: DMAs and DMRs. Wed. Apr 9 Recording agreements (Continued). The effect of the Internet on Artist Recording Agreements; So-called 360 (Equity) Deals. New alternative types of record and media deals. Calculating royalties. Wed. Apr 16 Record producer agreements. Soundtracks. Music Video issues; Wed. Apr 23 Touring & merchandising. Traditional and non-traditional (internetbased) Music marketing & promotion; How MySpace works; Case studies: Madonna & REM; Global marketing. Take home final exam Fri Final Exam papers due. Hard copies will be delivered to 52 AH Room 111 (my box in Prof. Michael Zager’s office) prior to 5 pm. In addition, copies will be e-mailed to me before 5 pm. Apr 25 4 As noted above, the mid-term exam will be “open book,” and the final exam will be a “take-home” exam. You may bring your class notes, class texts and other study materials to class for the mid-term exam. ------------------------------------------------------------------------------------------------------------- 5